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Dive Brief:
The Dodge Momentum Index, a benchmark that measures nonresidential construction planning, jumped 10.4% in June due to ongoing data center growth, according to the Dodge Construction Network.
Planning in the institutional sector — such as education, life sciences and healthcare — ticked up 0.2%, while commercial planning, buoyed by data center work , surged 14.5%.
“Data centers continued to dominate planning projects in June,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “The DMI is up 43% from June 2019 levels, signaling strong construction spending in 2025.”
Dive Insight:
The growth of the data center sector is a recurring trend in the Dodge Momentum Index in 2024. Martin also observed most segments in June, while not as strong as data centers, posted strong momentum in planning as well.
That indicates confidence in 2025 market conditions, she said.
A total of 38 projects valued at $100 million or more entered planning during June. The largest commercial sector projects included:
The $420 million Oaklawn Land Bay A data center in Leesburg, Virginia.
The $400 million PowerHouse Irving data center in Irving, Texas.
The largest institutional projects to enter planning included:
The $305 million Horizon Juvenile Center Annex in Woodstock, New York.
$285 million research and development buildings in San Diego, California.
Nevertheless, the Architectural Billings Index, an indicator of construction work nine to 12 months out, posted weak results once again , according to the most recent data from the American Institute of Architects.
The rate of inquiries into new projects, new work coming into firms and the value of signed design contracts all decreased further in May. That largely stems from elevated interest rates, which continues to cause hesitation in the industry, according to the AIA.
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